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Intimate
Brands, 84% owned by The Limited, sells intimate apparel,
lotions, fragrances and bath products through Victoria's Secret and
Bath and Body Works stores. Long term debt is a modest $350 million
and return on capital is about 35%. Predicted growth rate is 18%,
PE=21, nominal PE=16, advantage over a 5 year T-Bill (GIV) is 51%, and
div.=1.9%. Price on 12/31 was $29.88.
The following graph is
taken from a recent STT Advisor. Note the agreement between the long
and short term predictions.
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